S.B. 54

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AMENDMENTS RELATED TO EDUCATION FUNDING

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2012 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Benjamin M. McAdams

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House Sponsor:
____________

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LONG TITLE
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General Description:
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This bill makes changes to tax and education provisions to provide for education
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funding and requires certain advertisement related to education funding.
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Highlighted Provisions:
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This bill:
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. modifies definitions;
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. increases the maximum property tax rate allowed under a voter-authorized school
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district property tax levy;
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. makes changes to a state-funded program related to the voter-authorized school
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district property tax levy;
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. establishes a set tax rate for the school minimum basic levy, subject to the rate
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generating a specified revenue amount;
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. if certain conditions are met, requires the Executive Appropriations Committee to
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make a recommendation related to the school basic levy;
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. creates the Prioritizing Public Education Restricted Account within the Uniform
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School Fund;
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. changes certain advertising requirements related to the school minimum basic levy;
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. changes the personal exemption component of the individual income tax taxpayer
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tax credit calculation from a percentage of the federal personal exemption to a fixed
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dollar amount per exemption;

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. designates certain sales and use tax revenue to the Prioritizing Public Education
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Restricted Account;
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. requires notification to and a recommendation by the Executive Appropriations
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Committee if sales and use tax deposits into the Prioritizing Public Education
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Restricted account reach certain levels; and
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. makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides effective dates.
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This bill provides for retrospective operation.
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Utah Code Sections Affected:
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AMENDS:
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53A-17a-103, as last amended by Laws of Utah 2011, Chapter 371
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53A-17a-133, as last amended by Laws of Utah 2011, Chapters 364 and 371
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53A-17a-134, as last amended by Laws of Utah 2011, Chapters 342 and 371
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53A-17a-135, as last amended by Laws of Utah 2011, Chapter 7
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59-2-102, as last amended by Laws of Utah 2010, Chapter 14
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59-2-926, as last amended by Laws of Utah 2009, Chapter 388
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59-10-1018, as renumbered and amended by Laws of Utah 2008, Chapter 389
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59-12-103, as last amended by Laws of Utah 2011, Chapters 285, 303, 342, and 441
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59-12-1201, as last amended by Laws of Utah 2011, Chapter 309
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ENACTS:
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53A-17a-170, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
53A-17a-103
is amended to read:
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53A-17a-103. Definitions.
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As used in this chapter:
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(1) "Basic state-supported school program" or "basic program" means public education
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programs for kindergarten, elementary, and secondary school students that are operated and

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maintained for the amount derived by multiplying the number of weighted pupil units for each
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school district or charter school by the value established each year in statute, except as
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otherwise provided in this chapter.
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(2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
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ad valorem property tax revenue equal to the sum of:
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(i) the amount of ad valorem property tax revenue to be generated statewide in the
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previous year from imposing a minimum basic tax rate, as specified in Subsection
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53A-17a-135
(1)[(a)]; and
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(ii) the product of:
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(A) new growth, as defined in:
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(I) Section
59-2-924
; and
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(II) rules of the State Tax Commission; and
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(B) the minimum basic tax rate certified by the State Tax Commission for the previous
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year.
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(b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
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include property tax revenue received statewide from personal property that is:
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(i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
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Assessment; and
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(ii) semiconductor manufacturing equipment.
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(c) For purposes of calculating the certified revenue levy described in this Subsection
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(2), the State Tax Commission shall use:
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(i) the taxable value of real property assessed by a county assessor contained on the
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assessment roll;
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(ii) the taxable value of real and personal property assessed by the State Tax
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Commission; and
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(iii) the taxable year end value of personal property assessed by a county assessor
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contained on the prior year's assessment roll.
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(3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
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(4) (a) "State-supported minimum school program" or "Minimum School Program"
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means public school programs for kindergarten, elementary, and secondary schools as
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described in this Subsection (4).

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(b) The minimum school program established in school districts and charter schools
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shall include the equivalent of a school term of nine months as determined by the State Board
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of Education.
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(c) (i) The board shall establish the number of days or equivalent instructional hours
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that school is held for an academic school year.
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(ii) Education, enhanced by utilization of technologically enriched delivery systems,
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when approved by local school boards or charter school governing boards, shall receive full
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support by the State Board of Education as it pertains to fulfilling the attendance requirements,
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excluding time spent viewing commercial advertising.
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(d) The Minimum School Program includes a program or allocation funded by a line
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item appropriation or other appropriation designated as follows:
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(i) Basic School Program;
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(ii) Related to Basic Programs;
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(iii) Voted and Board Levy Programs; or
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(iv) Minimum School Program.
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(5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
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factors that is computed in accordance with this chapter for the purpose of determining the
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costs of a program on a uniform basis for each district.
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Section 2.
Section
53A-17a-133
is amended to read:
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53A-17a-133. State-supported voted local levy authorized -- Election
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requirements -- State guarantee -- Reconsideration of the program.
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(1) An election to consider adoption or modification of a voted local levy is required if
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initiative petitions signed by 10% of the number of electors who voted at the last preceding
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general election are presented to the local school board or by action of the board.
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(2) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
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an election in the manner set forth in Subsections (8) and (9) must vote in favor of a special
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tax.
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(ii) The tax rate may not exceed [.002] .0024 per dollar of taxable value.
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(b) Except as provided in Subsection (2)(c), in order to receive state support the first
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year, a district must receive voter approval no later than December 1 of the year prior to
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implementation.

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(c) Beginning on or after January 1, 2012, a school district may receive state support in
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accordance with Subsection (3) without complying with the requirements of Subsection (2)(b)
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if the local school board imposed a tax in accordance with this section during the taxable year
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beginning on January 1, 2011 and ending on December 31, 2011.
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(3) (a) In addition to the revenue a school district collects from the imposition of a levy
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pursuant to this section, the state shall contribute an amount sufficient to guarantee $25.25 per
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weighted pupil unit for each .0001 of the first [.0016] .0020 per dollar of taxable value.
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(b) The same dollar amount guarantee per weighted pupil unit for the [.0016] .0020 per
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dollar of taxable value under Subsection (3)(a) shall apply to the portion of the board local levy
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authorized in Section
53A-17a-164
, so that the guarantee shall apply up to a total of [.002]
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.0024 per dollar of taxable value if a school district levies a tax rate under both programs.
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(c) (i) Beginning July 1, 2011, the $25.25 guarantee under Subsections (3)(a) and (b)
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shall be indexed each year to the value of the weighted pupil unit by making the value of the
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guarantee equal to.010544 times the value of the prior year's weighted pupil unit.
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(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
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pupil unit for each succeeding year subject to the Legislature appropriating funds for an
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increase in the guarantee.
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(d) (i) The amount of state guarantee money to which a school district would otherwise
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be entitled to receive under this Subsection (3) may not be reduced for the sole reason that the
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district's levy is reduced as a consequence of changes in the certified tax rate under Section
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59-2-924
pursuant to changes in property valuation.
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(ii) Subsection (3)(d)(i) applies for a period of five years following any such change in
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the certified tax rate.
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(e) The guarantee provided under this section does not apply to the portion of a voted
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local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
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year, unless an increase in the voted local levy rate was authorized in an election conducted on
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or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
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(4) (a) An election to modify an existing voted local levy is not a reconsideration of the
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existing authority unless the proposition submitted to the electors expressly so states.
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(b) A majority vote opposing a modification does not deprive the district of authority to
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continue the levy.

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(c) If adoption of a voted local levy is contingent upon an offset reducing other local
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school board levies, the board must allow the electors, in an election, to consider modifying or
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discontinuing the imposition of the levy prior to a subsequent increase in other levies that
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would increase the total local school board levy.
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(d) Nothing contained in this section terminates, without an election, the authority of a
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school district to continue imposing an existing voted local levy previously authorized by the
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voters as a voted leeway program.
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(5) Notwithstanding Section
59-2-919
, a school district may budget an increased
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amount of ad valorem property tax revenue derived from a voted local levy imposed under this
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section in addition to revenue from new growth as defined in Subsection
59-2-924
(4), without
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having to comply with the notice requirements of Section
59-2-919
, if:
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(a) the voted local levy is approved:
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(i) in accordance with Subsections (8) and (9) on or after January 1, 2003; and
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(ii) within the four-year period immediately preceding the year in which the school
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district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted local levy; and
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(b) for a voted local levy approved or modified in accordance with this section on or
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after January 1, 2009, the school district complies with the requirements of Subsection (7).
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(6) Notwithstanding Section
59-2-919
, a school district may levy a tax rate under this
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section that exceeds the certified tax rate without having to comply with the notice
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requirements of Section
59-2-919
if:
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(a) the levy exceeds the certified tax rate as the result of a school district budgeting an
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increased amount of ad valorem property tax revenue derived from a voted local levy imposed
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under this section;
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(b) the voted local levy was approved:
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(i) in accordance with Subsections (8) and (9) on or after January 1, 2003; and
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(ii) within the four-year period immediately preceding the year in which the school
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district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted local levy; and
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(c) for a voted local levy approved or modified in accordance with this section on or
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after January 1, 2009, the school district complies with requirements of Subsection (7).

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(7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
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electors regarding the adoption or modification of a voted local levy shall contain the following
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statement:
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"A vote in favor of this tax means that (name of the school district) may increase
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revenue from this property tax without advertising the increase for the next five years."
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(8) (a) Before imposing a property tax levy pursuant to this section, a school district
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shall submit an opinion question to the school district's registered voters voting on the
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imposition of the tax rate so that each registered voter has the opportunity to express the
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registered voter's opinion on whether the tax rate should be imposed.
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(b) The election required by this Subsection (8) shall be held:
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(i) at a regular general election conducted in accordance with the procedures and
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requirements of Title 20A, Election Code, governing regular elections;
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(ii) at a municipal general election conducted in accordance with the procedures and
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requirements of Section
20A-1-202
; or
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(iii) at a local special election conducted in accordance with the procedures and
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requirements of Section
20A-1-203
.
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(c) Notwithstanding the requirements of Subsections (8)(a) and (b), beginning on or
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after January 1, 2012, a school district may levy a tax rate in accordance with this section
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without complying with the requirements of Subsections (8)(a) and (b) if the school district
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imposed a tax in accordance with this section at any time during the taxable year beginning on
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January 1, 2011, and ending on December 31, 2011.
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(9) If a school district determines that a majority of the school district's registered
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voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
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rate in accordance with Subsection (8), the school district may impose the tax rate.
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Section 3.
Section
53A-17a-134
is amended to read:
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53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
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(1) Except as provided in Subsection (9), a local school board may levy a tax rate of up
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to .0004 per dollar of taxable value to maintain a school program above the cost of the basic
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school program as follows:
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(a) a local school board shall use the money generated by the tax for class size
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reduction within the school district;

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(b) if a local school board determines that the average class size in the school district is
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not excessive, it may use the money for other school purposes but only if the board has
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declared the use for other school purposes in a public meeting prior to levying the tax rate; and
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(c) a district may not use the money for other school purposes under Subsection (1)(b)
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until it has certified in writing that its class size needs are already being met and has identified
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the other school purposes for which the money will be used to the State Board of Education
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and the state board has approved their use for other school purposes.
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(2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per weighted
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pupil unit for each .0001 per dollar of taxable value.
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(b) The guarantee shall increase in the same manner as provided for the voted local
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levy guarantee in Subsection
53A-17a-133
(3)(c).
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(c) (i) The amount of state guarantee money to which a school district would otherwise
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be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
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levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
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pursuant to changes in property valuation.
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(ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
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the certified tax rate.
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(d) The guarantee provided under this section does not apply to:
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(i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
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leeway was approved by voters pursuant to Subsections (4) through (6); or
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(ii) the portion of a board-authorized leeway rate that is in excess of the
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board-authorized leeway rate that was in effect for the previous fiscal year.
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(3) The levy authorized under this section is not in addition to the maximum rate of
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[.002] .0024 authorized in Section
53A-17a-133
, but is a board-authorized component of the
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total tax rate under that section.
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(4) As an exception to Section
53A-17a-133
, the board-authorized levy does not
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require voter approval, but the board may require voter approval if requested by a majority of
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the board.
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(5) An election to consider disapproval of the board-authorized levy is required, if
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within 60 days after the levy is established by the board, referendum petitions signed by the
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number of legal voters required in Section
20A-7-301
, who reside within the school district, are

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filed with the school district.
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(6) (a) A local school board shall establish its board-approved levy by April 1 to have
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the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
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election is required under this section, the levy applies to the fiscal year beginning July 1 of the
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next calendar year.
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(b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
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occur at a general election in even-numbered years, except that a vote required under this
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section in odd-numbered years shall occur at a special election held on a day in odd-numbered
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years that corresponds to the general election date. The school district shall pay for the cost of
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a special election.
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(7) (a) Modification or termination of a voter-approved leeway rate authorized under
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this section is governed by Section
53A-17a-133
.
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(b) A board-authorized leeway rate may be modified or terminated by a majority vote
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of the board subject to disapproval procedures specified in this section.
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(8) A board levy election does not require publication of a voter information pamphlet.
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(9) Beginning January 1, 2012, a local school board may not levy a tax in accordance
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with this section.
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Section 4.
Section
53A-17a-135
is amended to read:
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53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
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(1) (a) In order to qualify for receipt of the state contribution toward the basic program
265
and as its contribution toward its costs of the basic program, each school district shall impose a
266
minimum basic tax rate per dollar of taxable value [that generates $284,221,713 in revenues
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statewide] in accordance with this section.
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(b) [The preliminary estimate for the 2011-12] Beginning on January 1, 2012, the
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minimum basic tax rate is [.001628.] the greater of:
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(i) .001665; or
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(ii) the tax rate that generates the sum of:
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(A) $289,021,885 in revenues statewide; and
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(B) revenues that would be generated by multiplying the minimum basic tax rate that
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was imposed under this section in the prior year by the sum of new growth, as defined in
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Section
59-2-924
, statewide for each year after 2012.

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(c) The State Tax Commission shall certify on or before June 22 the minimum basic
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tax rate [that generates $284,221,713 in revenues statewide] to be imposed under Subsection
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(1)(b).
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(d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
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Section
53A-17a-103
, the state is subject to the notice requirements of Section
59-2-926
.
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(2) (a) The state shall contribute to each district toward the cost of the basic program in
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the district that portion which exceeds the proceeds of the levy authorized under Subsection
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(1).
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(b) In accord with the state strategic plan for public education and to fulfill its
285
responsibility for the development and implementation of that plan, the Legislature instructs
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the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
287
of the coming five years to develop budgets that will fully fund student enrollment growth.
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(3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
289
cost of the basic program in a school district, no state contribution shall be made to the basic
290
program.
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(b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
292
the basic program shall be paid into the Uniform School Fund as provided by law.
293
(4) (a) The Legislative Fiscal Analyst shall notify the Executive Appropriations
294
Committee no later than the February 28 preceding a fiscal year in which the sales and use tax
295
revenues deposited into the Prioritizing Public Education Restricted Account in accordance
296
with Section
59-12-103
are projected to be equal to the public education funding target
297
described in Subsection
59-12-103
(13).
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(b) Upon receipt of the notification required by Subsection (4)(a), the Executive
299
Appropriations Committee shall recommend to the Legislature whether the minimum basic tax
300
rate imposed under this section should:
301
(i) remain the same; or
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(ii) be adjusted.
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Section 5.
Section
53A-17a-170
is enacted to read:
304
53A-17a-170. Definitions -- Prioritizing Public Education Restricted Account --
305
Creation -- Funding -- Distribution of funds.
306
(1) As used in this section, "account" means the Prioritizing Public Education

307
Restricted Account.
308
(2) There is created within the Uniform School Fund a restricted account known as the
309
"Prioritizing Public Education Restricted Account."
310
(3) The account shall be funded by:
311
(a) revenues deposited in accordance with Section
59-12-103
;
312
(b) other amounts as provided by statute; and
313
(c) other appropriations made by the Legislature.
314
(4) The State Office of Education shall annually determine and report the number of
315
public education students, based on October enrollment counts, to the Division of Finance as
316
necessary for the Division of Finance to make allocations in accordance with Section
317
59-12-103
.
318
(5) The Legislature shall annually appropriate funds in the account to the State Board
319
of Education for allocation to school districts and charter schools for expenditure on local
320
public education purposes.
321
Section 6.
Section
59-2-102
is amended to read:
322
59-2-102. Definitions.
323
As used in this chapter and title:
324
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
325
engaging in dispensing activities directly affecting agriculture or horticulture with an
326
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
327
rotorcraft's use for agricultural and pest control purposes.
328
(2) "Air charter service" means an air carrier operation which requires the customer to
329
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
330
trip.
331
(3) "Air contract service" means an air carrier operation available only to customers
332
who engage the services of the carrier through a contractual agreement and excess capacity on
333
any trip and is not available to the public at large.
334
(4) "Aircraft" is as defined in Section
72-10-102
.
335
(5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
336
(i) operates:
337
(A) on an interstate route; and

338
(B) on a scheduled basis; and
339
(ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
340
regularly scheduled route.
341
(b) "Airline" does not include an:
342
(i) air charter service; or
343
(ii) air contract service.
344
(6) "Assessment roll" means a permanent record of the assessment of property as
345
assessed by the county assessor and the commission and may be maintained manually or as a
346
computerized file as a consolidated record or as multiple records by type, classification, or
347
categories.
348
(7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
349
ad valorem property tax revenue equal to the sum of:
350
(i) the amount of ad valorem property tax revenue to be generated statewide in the
351
previous year from imposing a [minimum basic tax rate] multicounty assessing and collecting
352
levy, as specified in [Subsection
53A-17a-135
(1)(a)] Section
59-2-1602
; and
353
(ii) the product of:
354
(A) new growth, as defined in:
355
(I) Section
59-2-924
; and
356
(II) rules of the commission; and
357
(B) the [minimum basic] multicounty assessing and collecting levy tax rate certified by
358
the commission for the previous year.
359
(b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
360
include property tax revenue received by a taxing entity from personal property that is:
361
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
362
(ii) semiconductor manufacturing equipment.
363
(c) For purposes of calculating the certified revenue levy described in this Subsection
364
(7), the commission shall use:
365
(i) the taxable value of real property assessed by a county assessor contained on the
366
assessment roll;
367
(ii) the taxable value of real and personal property assessed by the commission; and
368
(iii) the taxable year end value of personal property assessed by a county assessor

369
contained on the prior year's assessment roll.
370
(8) "County-assessed commercial vehicle" means:
371
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
372
Section
41-1a-301
and is not operated interstate to transport the vehicle owner's goods or
373
property in furtherance of the owner's commercial enterprise;
374
(b) any passenger vehicle owned by a business and used by its employees for
375
transportation as a company car or vanpool vehicle; and
376
(c) vehicles which are:
377
(i) especially constructed for towing or wrecking, and which are not otherwise used to
378
transport goods, merchandise, or people for compensation;
379
(ii) used or licensed as taxicabs or limousines;
380
(iii) used as rental passenger cars, travel trailers, or motor homes;
381
(iv) used or licensed in this state for use as ambulances or hearses;
382
(v) especially designed and used for garbage and rubbish collection; or
383
(vi) used exclusively to transport students or their instructors to or from any private,
384
public, or religious school or school activities.
385
(9) (a) Except as provided in Subsection (9)(b), for purposes of Section
59-2-801
,
386
"designated tax area" means a tax area created by the overlapping boundaries of only the
387
following taxing entities:
388
(i) a county; and
389
(ii) a school district.
390
(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
391
by the overlapping boundaries of:
392
(i) the taxing entities described in Subsection (9)(a); and
393
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
394
and the boundaries of the city or town are identical; or
395
(B) a special service district if the boundaries of the school district under Subsection
396
(9)(a) are located entirely within the special service district.
397
(10) "Eligible judgment" means a final and unappealable judgment or order under
398
Section
59-2-1330
:
399
(a) that became a final and unappealable judgment or order no more than 14 months

400
prior to the day on which the notice required by Section
59-2-919.1
is required to be mailed;
401
and
402
(b) for which a taxing entity's share of the final and unappealable judgment or order is
403
greater than or equal to the lesser of:
404
(i) $5,000; or
405
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
406
previous fiscal year.
407
(11) (a) "Escaped property" means any property, whether personal, land, or any
408
improvements to the property, subject to taxation and is:
409
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
410
to the wrong taxpayer by the assessing authority;
411
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
412
comply with the reporting requirements of this chapter; or
413
(iii) undervalued because of errors made by the assessing authority based upon
414
incomplete or erroneous information furnished by the taxpayer.
415
(b) Property which is undervalued because of the use of a different valuation
416
methodology or because of a different application of the same valuation methodology is not
417
"escaped property."
418
(12) "Fair market value" means the amount at which property would change hands
419
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
420
and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
421
market value" shall be determined using the current zoning laws applicable to the property in
422
question, except in cases where there is a reasonable probability of a change in the zoning laws
423
affecting that property in the tax year in question and the change would have an appreciable
424
influence upon the value.
425
(13) "Farm machinery and equipment," for purposes of the exemption provided under
426
Section
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
427
handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
428
tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
429
equipment used primarily for agricultural purposes; but does not include vehicles required to be
430
registered with the Motor Vehicle Division or vehicles or other equipment used for business

431
purposes other than farming.
432
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
433
degrees centigrade naturally present in a geothermal system.
434
(15) "Geothermal resource" means:
435
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
436
and
437
(b) the energy, in whatever form, including pressure, present in, resulting from, created
438
by, or which may be extracted from that natural heat, directly or through a material medium.
439
(16) (a) "Goodwill" means:
440
(i) acquired goodwill that is reported as goodwill on the books and records:
441
(A) of a taxpayer; and
442
(B) that are maintained for financial reporting purposes; or
443
(ii) the ability of a business to:
444
(A) generate income:
445
(I) that exceeds a normal rate of return on assets; and
446
(II) resulting from a factor described in Subsection (16)(b); or
447
(B) obtain an economic or competitive advantage resulting from a factor described in
448
Subsection (16)(b).
449
(b) The following factors apply to Subsection (16)(a)(ii):
450
(i) superior management skills;
451
(ii) reputation;
452
(iii) customer relationships;
453
(iv) patronage; or
454
(v) a factor similar to Subsections (16)(b)(i) through (iv).
455
(c) "Goodwill" does not include:
456
(i) the intangible property described in Subsection (20)(a) or (b);
457
(ii) locational attributes of real property, including:
458
(A) zoning;
459
(B) location;
460
(C) view;
461
(D) a geographic feature;

462
(E) an easement;
463
(F) a covenant;
464
(G) proximity to raw materials;
465
(H) the condition of surrounding property; or
466
(I) proximity to markets;
467
(iii) value attributable to the identification of an improvement to real property,
468
including:
469
(A) reputation of the designer, builder, or architect of the improvement;
470
(B) a name given to, or associated with, the improvement; or
471
(C) the historic significance of an improvement; or
472
(iv) the enhancement or assemblage value specifically attributable to the interrelation
473
of the existing tangible property in place working together as a unit.
474
(17) "Governing body" means:
475
(a) for a county, city, or town, the legislative body of the county, city, or town;
476
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
477
Local Districts, the local district's board of trustees;
478
(c) for a school district, the local board of education; or
479
(d) for a special service district under Title 17D, Chapter 1, Special Service District
480
Act:
481
(i) the legislative body of the county or municipality that created the special service
482
district, to the extent that the county or municipal legislative body has not delegated authority
483
to an administrative control board established under Section
17D-1-301
; or
484
(ii) the administrative control board, to the extent that the county or municipal
485
legislative body has delegated authority to an administrative control board established under
486
Section
17D-1-301
.
487
(18) (a) For purposes of Section
59-2-103
:
488
(i) "household" means the association of persons who live in the same dwelling,
489
sharing its furnishings, facilities, accommodations, and expenses; and
490
(ii) "household" includes married individuals, who are not legally separated, that have
491
established domiciles at separate locations within the state.
492
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

493
commission may make rules defining the term "domicile."
494
(19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
495
structure, fixture, fence, or other item that is permanently attached to land, regardless of
496
whether the title has been acquired to the land, if:
497
(i) (A) attachment to land is essential to the operation or use of the item; and
498
(B) the manner of attachment to land suggests that the item will remain attached to the
499
land in the same place over the useful life of the item; or
500
(ii) removal of the item would:
501
(A) cause substantial damage to the item; or
502
(B) require substantial alteration or repair of a structure to which the item is attached.
503
(b) "Improvement" includes:
504
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
505
(A) essential to the operation of the item described in Subsection (19)(a); and
506
(B) installed solely to serve the operation of the item described in Subsection (19)(a);
507
and
508
(ii) an item described in Subsection (19)(a) that:
509
(A) is temporarily detached from the land for repairs; and
510
(B) remains located on the land.
511
(c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
512
(i) an item considered to be personal property pursuant to rules made in accordance
513
with Section
59-2-107
;
514
(ii) a moveable item that is attached to land:
515
(A) for stability only; or
516
(B) for an obvious temporary purpose;
517
(iii) (A) manufacturing equipment and machinery; or
518
(B) essential accessories to manufacturing equipment and machinery;
519
(iv) an item attached to the land in a manner that facilitates removal without substantial
520
damage to:
521
(A) the land; or
522
(B) the item; or
523
(v) a transportable factory-built housing unit as defined in Section
59-2-1502
if that

555
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
556
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
557
valuable mineral.
558
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
559
otherwise removing a mineral from a mine.
560
(25) (a) "Mobile flight equipment" means tangible personal property that is:
561
(i) owned or operated by an:
562
(A) air charter service;
563
(B) air contract service; or
564
(C) airline; and
565
(ii) (A) capable of flight;
566
(B) attached to an aircraft that is capable of flight; or
567
(C) contained in an aircraft that is capable of flight if the tangible personal property is
568
intended to be used:
569
(I) during multiple flights;
570
(II) during a takeoff, flight, or landing; and
571
(III) as a service provided by an air charter service, air contract service, or airline.
572
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
573
engine that is rotated:
574
(A) at regular intervals; and
575
(B) with an engine that is attached to the aircraft.
576
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
577
commission may make rules defining the term "regular intervals."
578
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
579
sand, rock, gravel, and all carboniferous materials.
580
(27) "Personal property" includes:
581
(a) every class of property as defined in Subsection (28) which is the subject of
582
ownership and not included within the meaning of the terms "real estate" and "improvements";
583
(b) gas and water mains and pipes laid in roads, streets, or alleys;
584
(c) bridges and ferries;
585
(d) livestock which, for the purposes of the exemption provided under Section

586
59-2-1112
, means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
587
(e) outdoor advertising structures as defined in Section
72-7-502
.
588
(28) (a) "Property" means property that is subject to assessment and taxation according
589
to its value.
590
(b) "Property" does not include intangible property as defined in this section.
591
(29) "Public utility," for purposes of this chapter, means the operating property of a
592
railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
593
company, electrical corporation, telephone corporation, sewerage corporation, or heat
594
corporation where the company performs the service for, or delivers the commodity to, the
595
public generally or companies serving the public generally, or in the case of a gas corporation
596
or an electrical corporation, where the gas or electricity is sold or furnished to any member or
597
consumers within the state for domestic, commercial, or industrial use. Public utility also
598
means the operating property of any entity or person defined under Section
54-2-1
except water
599
corporations.
600
(30) "Real estate" or "real property" includes:
601
(a) the possession of, claim to, ownership of, or right to the possession of land;
602
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
603
individuals or corporations growing or being on the lands of this state or the United States, and
604
all rights and privileges appertaining to these; and
605
(c) improvements.
606
(31) "Residential property," for the purposes of the reductions and adjustments under
607
this chapter, means any property used for residential purposes as a primary residence. It does
608
not include property used for transient residential use or condominiums used in rental pools.
609
(32) (a) "State-assessed commercial vehicle" means:
610
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
611
to transport passengers, freight, merchandise, or other property for hire; or
612
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
613
transports the vehicle owner's goods or property in furtherance of the owner's commercial
614
enterprise.
615
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
616
are specified in Subsection (8)(c) as county-assessed commercial vehicles.

617
(33) "Taxable value" means fair market value less any applicable reduction allowed for
618
residential property under Section
59-2-103
.
619
(34) "Tax area" means a geographic area created by the overlapping boundaries of one
620
or more taxing entities.
621
(35) "Taxing entity" means any county, city, town, school district, special taxing
622
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
623
Districts, or other political subdivision of the state with the authority to levy a tax on property.
624
(36) "Tax roll" means a permanent record of the taxes charged on property, as extended
625
on the assessment roll and may be maintained on the same record or records as the assessment
626
roll or may be maintained on a separate record properly indexed to the assessment roll. It
627
includes tax books, tax lists, and other similar materials.
628
Section 7.
Section
59-2-926
is amended to read:
629
59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
630
If the state authorizes a levy pursuant to Section
53A-17a-135
that exceeds the certified
631
revenue levy as defined in Section
53A-17a-103
or authorizes a levy pursuant to Section
632
59-2-1602
that exceeds the certified revenue levy as defined in Section
59-2-102
, the state shall
633
publish a notice no later than 10 days after the last day of the annual [legislative] general
634
session that meets the following requirements:
635
(1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
636
authorized a levy that generates revenue in excess of the previous year's ad valorem tax
637
revenue, plus new growth, but exclusive of revenue from collections from redemptions,
638
interest, and penalties:
639
(i) in a newspaper of general circulation in the state; and
640
(ii) as required in Section
45-1-101
.
641
(b) Except an advertisement published on a website, the advertisement described in
642
Subsection (1)(a):
643
(i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
644
point, and surrounded by a 1/4-inch border[:];
645
(ii) may not be placed in that portion of the newspaper where legal notices and
646
classified advertisements appear; and
647
(iii) shall be run once.

648
(2) The form and content of the notice shall be substantially as follows:
649

"NOTICE OF [TAX] REVENUE INCREASE

650
The state has budgeted an increase in its property tax revenue from $__________ to
651
$__________ or ____%. The increase in property tax revenues will come from the following
652
sources (include all of the following provisions):
653
(a) $__________ of the increase will come from (provide an explanation of the cause
654
of adjustment or increased revenues, such as reappraisals or factoring orders);
655
(b) $__________ of the increase will come from natural increases in the value of the
656
tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
657
(c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
658
the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
659
both) paid $____________ in property taxes would pay the following:
660
(i) $__________ if the state of Utah did not budget an increase in property tax revenue
661
exclusive of new growth; and
662
(ii) $__________ under the increased property tax revenues exclusive of new growth
663
budgeted by the state of Utah."
664
(include the following if the advertisement is required as a result of a levy imposed under
665
Section
53A-17a-135
)
666
(blank line)
667

"EXPLANATION OF NEED FOR ADDITIONAL REVENUE

668
* Last year, Utah had _________ enrolled public school students, which is
669
______________ students more than the prior year. An additional
670
______________ students are projected for the coming school year.
671
* The revenue increase shown above for the minimum basic tax rate corresponds
672
to a revenue increase of $____________ per enrolled student.
673
* Property tax revenue from the school minimum basic tax rate is used for local
674
public education purposes.
675
* During the most recent annual general session, the Legislature enacted _____
676
bills that reduce Education Fund revenues. These bills are estimated to reduce
677
Education Fund revenues by a total of $______________. A more detailed
678
report is available on the Legislature's website at le.utah.gov.

679
* Last year, a total of $_______________, or $___________ per enrolled student,
680
was deposited into the Prioritizing Public Education Restricted Account from
681
state sales and use tax revenue. This per-student amount is _____% of the
682
targeted state sales and use tax funding amount of $____ per enrolled student."
683
Section 8.
Section
59-10-1018
is amended to read:
684
59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
685
(1) As used in this section:
686
(a) "Head of household filing status" means a head of household, as defined in Section
687
2(b), Internal Revenue Code, who files a single federal individual income tax return for the
688
taxable year.
689
(b) "Joint filing status" means:
690
(i) a husband and wife who file a single return jointly under this chapter for a taxable
691
year; or
692
(ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
693
single federal individual income tax return for the taxable year.
694
(c) "Single filing status" means:
695
(i) a single individual who files a single federal individual income tax return for the
696
taxable year; or
697
(ii) a married individual who:
698
(A) does not file a single federal individual income tax return jointly with that married
699
individual's spouse for the taxable year; and
700
(B) files a single federal individual income tax return for the taxable year.
701
(2) Except as provided in Section
59-10-1002.2
, and subject to Subsections (3) through
702
(5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
703
equal to the sum of:
704
(a) (i) for a claimant that deducts the standard deduction on the claimant's federal
705
individual income tax return for the taxable year, 6% of the amount the claimant deducts as
706
allowed as the standard deduction on the claimant's federal individual income tax return for
707
that taxable year; or
708
(ii) for a claimant that itemizes deductions on the claimant's federal individual income
709
tax return for the taxable year, the product of:

710
(A) the difference between:
711
(I) the amount the claimant deducts as allowed as an itemized deduction on the
712
claimant's federal individual income tax return for that taxable year; and
713
(II) any amount of state or local income taxes the claimant deducts as allowed as an
714
itemized deduction on the claimant's federal individual income tax return for that taxable year;
715
and
716
(B) 6%; and
717
(b) the product of:
718
(i) [75% of the total amount] $2,775 multiplied by number of personal exemptions the
719
claimant [deducts] claims as allowed as a personal exemption [deduction] on the claimant's
720
federal individual income tax return for that taxable year; and
721
(ii) 6%.
722
(3) A claimant may not carry forward or carry back a tax credit under this section.
723
(4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
724
by which a claimant's state taxable income exceeds:
725
(a) for a claimant who has a single filing status, $12,000;
726
(b) for a claimant who has a head of household filing status, $18,000; or
727
(c) for a claimant who has a joint filing status, $24,000.
728
(5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
729
increase or decrease the following dollar amounts by a percentage equal to the percentage
730
difference between the consumer price index for the preceding calendar year and the consumer
731
price index for calendar year 2007:
732
(i) the dollar amount listed in Subsection (4)(a); and
733
(ii) the dollar amount listed in Subsection (4)(b).
734
(b) After the commission increases or decreases the dollar amounts listed in Subsection
735
(5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
736
nearest whole dollar.
737
(c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
738
the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
739
the dollar amount listed in Subsection (4)(c) is equal to the product of:
740
(i) the dollar amount listed in Subsection (4)(a); and

741
(ii) two.
742
(d) For purposes of Subsection (5)(a), the commission shall calculate the consumer
743
price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
744
Section 9.
Section
59-12-103
is amended to read:
745
59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
746
tax revenues.
747
(1) A tax is imposed on the purchaser as provided in this part for amounts paid or
748
charged for the following transactions:
749
(a) retail sales of tangible personal property made within the state;
750
(b) amounts paid for:
751
(i) telecommunications service, other than mobile telecommunications service, that
752
originates and terminates within the boundaries of this state;
753
(ii) mobile telecommunications service that originates and terminates within the
754
boundaries of one state only to the extent permitted by the Mobile Telecommunications
755
Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
756
(iii) an ancillary service associated with a:
757
(A) telecommunications service described in Subsection (1)(b)(i); or
758
(B) mobile telecommunications service described in Subsection (1)(b)(ii);
759
(c) sales of the following for commercial use:
760
(i) gas;
761
(ii) electricity;
762
(iii) heat;
763
(iv) coal;
764
(v) fuel oil; or
765
(vi) other fuels;
766
(d) sales of the following for residential use:
767
(i) gas;
768
(ii) electricity;
769
(iii) heat;
770
(iv) coal;
771
(v) fuel oil; or

803
(iii) consumed; and
804
(m) amounts paid or charged for a sale:
805
(i) (A) of a product transferred electronically; or
806
(B) of a repair or renovation of a product transferred electronically; and
807
(ii) regardless of whether the sale provides:
808
(A) a right of permanent use of the product; or
809
(B) a right to use the product that is less than a permanent use, including a right:
810
(I) for a definite or specified length of time; and
811
(II) that terminates upon the occurrence of a condition.
812
(2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
813
is imposed on a transaction described in Subsection (1) equal to the sum of:
814
(i) a state tax imposed on the transaction at a tax rate equal to the sum of:
815
(A) 4.70%; and
816
(B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
817
and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
818
through
59-12-215
is in a county in which the state imposes the tax under Part 18, Additional
819
State Sales and Use Tax Act; and
820
(II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
821
and Use Tax Act, if the location of the transaction as determined under Sections
59-12-211
822
through
59-12-215
is in a city, town, or the unincorporated area of a county in which the state
823
imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
824
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
825
transaction under this chapter other than this part.
826
(b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
827
on a transaction described in Subsection (1)(d) equal to the sum of:
828
(i) a state tax imposed on the transaction at a tax rate of 2%; and
829
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
830
transaction under this chapter other than this part.
831
(c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
832
on amounts paid or charged for food and food ingredients equal to the sum of:
833
(i) a state tax imposed on the amounts paid or charged for food and food ingredients at

834
a tax rate of 1.75%; and
835
(ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
836
amounts paid or charged for food and food ingredients under this chapter other than this part.
837
(d) (i) For a bundled transaction that is attributable to food and food ingredients and
838
tangible personal property other than food and food ingredients, a state tax and a local tax is
839
imposed on the entire bundled transaction equal to the sum of:
840
(A) a state tax imposed on the entire bundled transaction equal to the sum of:
841
(I) the tax rate described in Subsection (2)(a)(i)(A); and
842
(II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
843
Sales and Use Tax Act, if the location of the transaction as determined under Sections
844
59-12-211
through
59-12-215
is in a county in which the state imposes the tax under Part 18,
845
Additional State Sales and Use Tax Act; and
846
(Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
847
Sales and Use Tax Act, if the location of the transaction as determined under Sections
848
59-12-211
through
59-12-215
is in a city, town, or the unincorporated area of a county in which
849
the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
850
(B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
851
described in Subsection (2)(a)(ii).
852
(ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
853
transaction described in Subsection (2)(d)(i):
854
(A) if the sales price of the bundled transaction is attributable to tangible personal
855
property, a product, or a service that is subject to taxation under this chapter and tangible
856
personal property, a product, or service that is not subject to taxation under this chapter, the
857
entire bundled transaction is subject to taxation under this chapter unless:
858
(I) the seller is able to identify by reasonable and verifiable standards the tangible
859
personal property, product, or service that is not subject to taxation under this chapter from the
860
books and records the seller keeps in the seller's regular course of business; or
861
(II) state or federal law provides otherwise; or
862
(B) if the sales price of a bundled transaction is attributable to two or more items of
863
tangible personal property, products, or services that are subject to taxation under this chapter
864
at different rates, the entire bundled transaction is subject to taxation under this chapter at the

865
higher tax rate unless:
866
(I) the seller is able to identify by reasonable and verifiable standards the tangible
867
personal property, product, or service that is subject to taxation under this chapter at the lower
868
tax rate from the books and records the seller keeps in the seller's regular course of business; or
869
(II) state or federal law provides otherwise.
870
(iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
871
seller's regular course of business includes books and records the seller keeps in the regular
872
course of business for nontax purposes.
873
(e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
874
rate imposed under the following shall take effect on the first day of a calendar quarter:
875
(i) Subsection (2)(a)(i)(A);
876
(ii) Subsection (2)(b)(i);
877
(iii) Subsection (2)(c)(i); or
878
(iv) Subsection (2)(d)(i)(A)(I).
879
(f) (i) A tax rate increase shall take effect on the first day of the first billing period that
880
begins after the effective date of the tax rate increase if the billing period for the transaction
881
begins before the effective date of a tax rate increase imposed under:
882
(A) Subsection (2)(a)(i)(A);
883
(B) Subsection (2)(b)(i);
884
(C) Subsection (2)(c)(i); or
885
(D) Subsection (2)(d)(i)(A)(I).
886
(ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
887
billing period that began before the effective date of the repeal of the tax or the tax rate
888
decrease if the billing period for the transaction begins before the effective date of the repeal of
889
the tax or the tax rate decrease imposed under:
890
(A) Subsection (2)(a)(i)(A);
891
(B) Subsection (2)(b)(i);
892
(C) Subsection (2)(c)(i); or
893
(D) Subsection (2)(d)(i)(A)(I).
894
(g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale
895
is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal

896
or change in a tax rate takes effect:
897
(A) on the first day of a calendar quarter; and
898
(B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
899
(ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
900
(A) Subsection (2)(a)(i)(A);
901
(B) Subsection (2)(b)(i);
902
(C) Subsection (2)(c)(i); or
903
(D) Subsection (2)(d)(i)(A)(I).
904
(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
905
the commission may by rule define the term "catalogue sale."
906
(3) (a) The following state taxes shall be deposited into the General Fund:
907
(i) the tax imposed by Subsection (2)(a)(i)(A);
908
(ii) the tax imposed by Subsection (2)(b)(i);
909
(iii) the tax imposed by Subsection (2)(c)(i); or
910
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
911
(b) The following local taxes shall be distributed to a county, city, or town as provided
912
in this chapter:
913
(i) the tax imposed by Subsection (2)(a)(ii);
914
(ii) the tax imposed by Subsection (2)(b)(ii);
915
(iii) the tax imposed by Subsection (2)(c)(ii); and
916
(iv) the tax imposed by Subsection (2)(d)(i)(B).
917
(4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
918
2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
919
through (g):
920
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
921
(A) by a 1/16% tax rate on the transactions described in Subsection (1); and
922
(B) for the fiscal year; or
923
(ii) $17,500,000.
924
(b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
925
described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
926
Department of Natural Resources to:

927
(A) implement the measures described in Subsections
79-2-303
(3)(a) through (d) to
928
protect sensitive plant and animal species; or
929
(B) award grants, up to the amount authorized by the Legislature in an appropriations
930
act, to political subdivisions of the state to implement the measures described in Subsections
931
79-2-303
(3)(a) through (d) to protect sensitive plant and animal species.
932
(ii) Money transferred to the Department of Natural Resources under Subsection
933
(4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
934
person to list or attempt to have listed a species as threatened or endangered under the
935
Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
936
(iii) At the end of each fiscal year:
937
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
938
Conservation and Development Fund created in Section
73-10-24
;
939
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
940
Program Subaccount created in Section
73-10c-5
; and
941
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
942
Program Subaccount created in Section
73-10c-5
.
943
(c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
944
Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
945
created in Section
4-18-6
.
946
(d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
947
in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
948
Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
949
water rights.
950
(ii) At the end of each fiscal year:
951
(A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
952
Conservation and Development Fund created in Section
73-10-24
;
953
(B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
954
Program Subaccount created in Section
73-10c-5
; and
955
(C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
956
Program Subaccount created in Section
73-10c-5
.
957
(e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described

958
in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
959
Fund created in Section
73-10-24
for use by the Division of Water Resources.
960
(ii) In addition to the uses allowed of the Water Resources Conservation and
961
Development Fund under Section
73-10-24
, the Water Resources Conservation and
962
Development Fund may also be used to:
963
(A) conduct hydrologic and geotechnical investigations by the Division of Water
964
Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
965
quantifying surface and ground water resources and describing the hydrologic systems of an
966
area in sufficient detail so as to enable local and state resource managers to plan for and
967
accommodate growth in water use without jeopardizing the resource;
968
(B) fund state required dam safety improvements; and
969
(C) protect the state's interest in interstate water compact allocations, including the
970
hiring of technical and legal staff.
971
(f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
972
in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
973
created in Section
73-10c-5
for use by the Water Quality Board to fund wastewater projects.
974
(g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
975
in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
976
created in Section
73-10c-5
for use by the Division of Drinking Water to:
977
(i) provide for the installation and repair of collection, treatment, storage, and
978
distribution facilities for any public water system, as defined in Section
19-4-102
;
979
(ii) develop underground sources of water, including springs and wells; and
980
(iii) develop surface water sources.
981
(5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
982
2006, the difference between the following amounts shall be expended as provided in this
983
Subsection (5), if that difference is greater than $1:
984
(i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
985
fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
986
(ii) $17,500,000.
987
(b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
988
(A) transferred each fiscal year to the Department of Natural Resources as dedicated

989
credits; and
990
(B) expended by the Department of Natural Resources for watershed rehabilitation or
991
restoration.
992
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
993
in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
994
created in Section
73-10-24
.
995
(c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
996
remaining difference described in Subsection (5)(a) shall be:
997
(A) transferred each fiscal year to the Division of Water Resources as dedicated
998
credits; and
999
(B) expended by the Division of Water Resources for cloud-seeding projects
1000
authorized by Title 73, Chapter 15, Modification of Weather.
1001
(ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
1002
in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
1003
created in Section
73-10-24
.
1004
(d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
1005
remaining difference described in Subsection (5)(a) shall be deposited into the Water
1006
Resources Conservation and Development Fund created in Section
73-10-24
for use by the
1007
Division of Water Resources for:
1008
(i) preconstruction costs:
1009
(A) as defined in Subsection
73-26-103
(6) for projects authorized by Title 73, Chapter
1010
26, Bear River Development Act; and
1011
(B) as defined in Subsection
73-28-103
(8) for the Lake Powell Pipeline project
1012
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
1013
(ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
1014
Chapter 26, Bear River Development Act;
1015
(iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
1016
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
1017
(iv) other uses authorized under Sections
73-10-24
,
73-10-25.1
,
73-10-30
, and
1018
Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
1019
(e) After making the transfers required by Subsections (5)(b) and (c) and subject to

1020
Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
1021
transferred each year as dedicated credits to the Division of Water Rights to cover the costs
1022
incurred for employing additional technical staff for the administration of water rights.
1023
(f) At the end of each fiscal year, any unexpended dedicated credits described in
1024
Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
1025
Fund created in Section
73-10-24
.
1026
(6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
1027
2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
1028
tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
1029
the Transportation Fund created by Section
72-2-102
.
1030
(7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
1031
beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
1032
Highway Fund Restricted Account created in Section
72-2-118
a portion of the taxes listed
1033
under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
1034
transactions under Subsection (1).
1035
(b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
1036
have been paid off and the highway projects completed that are intended to be paid from
1037
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1038
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the Division of
1039
Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
1040
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
1041
by a 1/64% tax rate on the taxable transactions under Subsection (1).
1042
(8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
1043
Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
1044
the Centennial Highway Fund Restricted Account created by Section
72-2-118
a portion of the
1045
taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
1046
following taxes, which represents a portion of the approximately 17% of sales and use tax
1047
revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
1048
(i) the tax imposed by Subsection (2)(a)(i)(A);
1049
(ii) the tax imposed by Subsection (2)(b)(i);
1050
(iii) the tax imposed by Subsection (2)(c)(i); and

1051
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
1052
(b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
1053
Subsection (7)(a), and until Subsection (8)(c) applies, for the 2011-12 fiscal year only, the
1054
Division of Finance shall deposit into the Centennial Highway Fund Restricted Account
1055
created by Section
72-2-118
a portion of the taxes listed under Subsection (3)(a) equal to 8.3%
1056
of the revenues collected from the following taxes, which represents a portion of the
1057
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1058
on vehicles and vehicle-related products:
1059
(i) the tax imposed by Subsection (2)(a)(i)(A);
1060
(ii) the tax imposed by Subsection (2)(b)(i);
1061
(iii) the tax imposed by Subsection (2)(c)(i); and
1062
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
1063
(c) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
1064
Subsection (7)(b), and until Subsection (8)(d) or (e) applies, when the highway general
1065
obligation bonds have been paid off and the highway projects completed that are intended to be
1066
paid from revenues deposited in the Centennial Highway Fund Restricted Account as
1067
determined by the Executive Appropriations Committee under Subsection
72-2-118
(6)(d), the
1068
Division of Finance shall deposit into the Transportation Investment Fund of 2005 created by
1069
Section
72-2-124
a portion of the taxes listed under Subsection (3)(a) equal to 8.3% of the
1070
revenues collected from the following taxes, which represents a portion of the approximately
1071
17% of sales and use tax revenues generated annually by the sales and use tax on vehicles and
1072
vehicle-related products:
1073
(i) the tax imposed by Subsection (2)(a)(i)(A);
1074
(ii) the tax imposed by Subsection (2)(b)(i);
1075
(iii) the tax imposed by Subsection (2)(c)(i); and
1076
(iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
1077
(d) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
1078
Subsection (7)(a), until Subsection (8)(e) applies, and subject to Subsection (8)(f), for a fiscal
1079
year beginning on or after July 1, 2012, the Division of Finance shall deposit into the
1080
Centennial Highway Fund Restricted Account created by Section
72-2-118
:
1081
(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of

1082
the revenues collected from the following taxes, which represents a portion of the
1083
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1084
on vehicles and vehicle-related products:
1085
(A) the tax imposed by Subsection (2)(a)(i)(A);
1086
(B) the tax imposed by Subsection (2)(b)(i);
1087
(C) the tax imposed by Subsection (2)(c)(i); and
1088
(D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
1089
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
1090
current fiscal year from the sales and use taxes described in Subsections (8)(d)(i)(A) through
1091
(D) that exceeds the amount collected from the sales and use taxes described in Subsections
1092
(8)(d)(i)(A) through (D) in the 2010-11 fiscal year.
1093
(e) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
1094
Subsection (7)(b), and subject to Subsection (8)(f), when the highway general obligation bonds
1095
have been paid off and the highway projects completed that are intended to be paid from
1096
revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
1097
Executive Appropriations Committee under Subsection
72-2-118
(6)(d), for a fiscal year
1098
beginning on or after July 1, 2012, the Division of Finance shall deposit into the Transportation
1099
Investment Fund of 2005 created by Section
72-2-124
:
1100
(i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
1101
the revenues collected from the following taxes, which represents a portion of the
1102
approximately 17% of sales and use tax revenues generated annually by the sales and use tax
1103
on vehicles and vehicle-related products:
1104
(A) the tax imposed by Subsection (2)(a)(i)(A);
1105
(B) the tax imposed by Subsection (2)(b)(i);
1106
(C) the tax imposed by Subsection (2)(c)(i); and
1107
(D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
1108
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
1109
current fiscal year from the sales and use taxes described in Subsections (8)(e)(i)(A) through
1110
(D) that exceeds the amount collected from the sales and use taxes described in Subsections
1111
(8)(e)(i)(A) through (D) in the 2010-11 fiscal year.
1112
(f) (i) Subject to Subsections (8)(f)(ii) and (iii), in any fiscal year that the portion of the

1113
sales and use taxes deposited under Subsection (8)(d) or (e) represents an amount that is a total
1114
lower percentage of the sales and use taxes described in Subsections (8)(e)(i)(A) through (D)
1115
generated in the current fiscal year than the total percentage of sales and use taxes deposited in
1116
the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
1117
(8)(d) or (e) equal to the product of:
1118
(A) the total percentage of sales and use taxes deposited under Subsection (8)(d) or (e)
1119
in the previous fiscal year; and
1120
(B) the total sales and use tax revenue generated by the taxes described in Subsections
1121
(8)(e)(i)(A) through (D) in the current fiscal year.
1122
(ii) In any fiscal year in which the portion of the sales and use taxes deposited under
1123
Subsection (8)(d) or (e) would exceed 17% of the revenues collected from the sales and use
1124
taxes described in Subsections (8)(e)(i)(A) through (D) in the current fiscal year, the Division
1125
of Finance shall deposit 17% of the revenues collected from the sales and use taxes described
1126
in Subsections (8)(e)(i)(A) through (D) for the current fiscal year under Subsection (8)(d) or
1127
(e).
1128
(iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
1129
from the sales and use taxes described in Subsections (8)(e)(i)(A) through (D) was deposited
1130
under Subsection (8)(d) or (e), the Division of Finance shall annually deposit 17% of the
1131
revenues collected from the sales and use taxes described in Subsections (8)(e)(i)(A) through
1132
(D) in the current fiscal year under Subsection (8)(d) or (e).
1133
(9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
1134
Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
1135
under Subsection (3)(a) into the Critical Highway Needs Fund created by Section
72-2-125
.
1136
(b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
1137
year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
1138
$90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
1139
Critical Highway Needs Fund created by Section
72-2-125
.
1140
(c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
1141
Subsections (7) and (8), when the general obligation bonds authorized by Section
63B-16-101
1142
have been paid off and the highway projects completed that are included in the prioritized
1143
project list under Subsection
72-2-125
(4) as determined in accordance with Subsection

1144
72-2-125
(6), the Division of Finance shall annually deposit $90,000,000 of the revenues
1145
generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
1146
of 2005 created by Section
72-2-124
.
1147
(10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
1148
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
1149
created by Section
9-4-1409
and expended as provided in Section
9-4-1409
.
1150
(11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
1151
(11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
1152
Finance shall deposit into the Critical Highway Needs Fund created by Section
72-2-125
the
1153
amount of tax revenue generated by a .025% tax rate on the transactions described in
1154
Subsection (1).
1155
(ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
1156
the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
1157
food and food ingredients, except for tax revenue generated by a bundled transaction
1158
attributable to food and food ingredients and tangible personal property other than food and
1159
food ingredients described in Subsection (2)[(e)](d).
1160
(b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
1161
and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
1162
obligation bonds authorized by Section
63B-16-101
have been paid off and the highway
1163
projects completed that are included in the prioritized project list under Subsection
72-2-125
(4)
1164
as determined in accordance with Subsection
72-2-125
(6), the Division of Finance shall
1165
deposit into the Transportation Investment Fund of 2005 created by Section
72-2-124
the
1166
amount of tax revenue generated by a .025% tax rate on the transactions described in
1167
Subsection (1).
1168
(ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
1169
the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
1170
charged for food and food ingredients, except for tax revenue generated by a bundled
1171
transaction attributable to food and food ingredients and tangible personal property other than
1172
food and food ingredients described in Subsection (2)[(e)](d).
1173
(12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
1174
(12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the

1175
Transportation Fund created by Section
72-2-102
the amount of tax revenue generated by a
1176
.025% tax rate on the transactions described in Subsection (1) to be expended to address
1177
chokepoints in construction management.
1178
(b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
1179
the Transportation Fund any tax revenue generated by amounts paid or charged for food and
1180
food ingredients, except for tax revenue generated by a bundled transaction attributable to food
1181
and food ingredients and tangible personal property other than food and food ingredients
1182
described in Subsection (2)[(e)](d).
1183
(13) (a) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
1184
Finance shall annually deposit a portion of the taxes listed under Subsection (3)(a) into the
1185
Prioritizing Public Education Restricted Account created in Section
53A-17a-170
equal to the
1186
lesser of:
1187
(i) the per-pupil funding target for the fiscal year calculated in accordance with
1188
Subsection (13)(b); or
1189
(ii) an amount equal to 30% of the growth in the amount of revenues collected in the
1190
current fiscal year from the sales and use taxes described in Subsection (3)(a) that exceeds the
1191
revenues collected from the sales and use taxes described in Subsection (3)(a) in fiscal year
1192
2010-11.
1193
(b) (i) For purposes of Subsection (13)(a), the per-pupil funding target is:
1194
(A) for fiscal year 2011-12, $750 per enrolled public school student, based on October
1195
enrollment counts; or
1196
(B) for a fiscal year after fiscal year 2011-12, $750 per enrolled public school student,
1197
based on October enrollment counts, increased or decreased by a percentage equal to the
1198
percentage difference between the consumer price index for the calendar year in which the
1199
fiscal year begins and calendar year 2011, rounded up to the nearest $10 increment.
1200
(ii) For purposes of Subsection (13)(b)(i), the consumer price index is calculated as
1201
provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1202
Section 10.
Section
59-12-1201
is amended to read:
1203
59-12-1201. Motor vehicle rental tax -- Rate -- Exemptions -- Administration,
1204
collection, and enforcement of tax -- Administrative charge -- Deposits.
1205
(1) (a) Except as provided in Subsection (3), there is imposed a tax of 2.5% on all

1206
short-term leases and rentals of motor vehicles not exceeding 30 days.
1207
(b) The tax imposed in this section is in addition to all other state, county, or municipal
1208
fees and taxes imposed on rentals of motor vehicles.
1209
(2) (a) Subject to Subsection (2)(b), a tax rate repeal or tax rate change for the tax
1210
imposed under Subsection (1) shall take effect on the first day of a calendar quarter.
1211
(b) (i) For a transaction subject to a tax under Subsection (1), a tax rate increase shall
1212
take effect on the first day of the first billing period:
1213
(A) that begins after the effective date of the tax rate increase; and
1214
(B) if the billing period for the transaction begins before the effective date of a tax rate
1215
increase imposed under Subsection (1).
1216
(ii) For a transaction subject to a tax under Subsection (1), the repeal of a tax or a tax
1217
rate decrease shall take effect on the first day of the last billing period:
1218
(A) that began before the effective date of the repeal of the tax or the tax rate decrease;
1219
and
1220
(B) if the billing period for the transaction begins before the effective date of the repeal
1221
of the tax or the tax rate decrease imposed under Subsection (1).
1222
(3) A motor vehicle is exempt from the tax imposed under Subsection (1) if:
1223
(a) the motor vehicle is registered for a gross laden weight of 12,001 or more pounds;
1224
(b) the motor vehicle is rented as a personal household goods moving van; or
1225
(c) the lease or rental of the motor vehicle is made for the purpose of temporarily
1226
replacing a person's motor vehicle that is being repaired pursuant to a repair agreement or an
1227
insurance agreement.
1228
(4) (a) (i) The tax authorized under this section shall be administered, collected, and
1229
enforced in accordance with:
1230
(A) the same procedures used to administer, collect, and enforce the tax under Part 1,
1231
Tax Collection; and
1232
(B) Chapter 1, General Taxation Policies.
1233
(ii) Notwithstanding Subsection (4)(a)(i), a tax under this part is not subject to
1234
Subsections
59-12-103
(4) through [(12)] (13) or Section
59-12-107.1
or
59-12-123
.
1235
(b) The commission shall retain and deposit an administrative charge in accordance
1236
with Section
59-1-306
from the revenues the commission collects from a tax under this part.

1237
(c) Except as provided under Subsection (4)(b), all revenue received by the
1238
commission under this section shall be deposited daily with the state treasurer and credited
1239
monthly to the Transportation Corridor Preservation Revolving Loan Fund under Section
1240
72-2-117
.
1241
Section 11. Effective date -- Retrospective operation.
1242
(1) Except as provided in Subsections (2) and (3), this bill takes effect on July 1, 2012.
1243
(2) The amendments to the following sections have retrospective operation to January
1244
1, 2012:
1245
(a) Section
53A-17a-103
;
1246
(b) Section
53A-17a-135
;
1247
(c) Section
59-2-102
; and
1248
(d) Section
59-2-926
.
1249
(3) The amendments to Section
59-10-1018
have retrospective operation for a taxable
1250
year beginning on or after January 1, 2012.